New insertion Chapter XVIB in the Income Tax Rules 2002 regarding draft Refund Rules

Government of Pakistan
Revenue Division
Federal Board of Revenue

Islamabad, the 20th November, 2020.

NOTIFICATION
(Income Tax)

S.R.O. 1239 (I)/2020.- The following draft of certain further amendments in the Income Tax Rules 2002, which the Federal Board of Revenue proposes to make in exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), is hereby published for the information of all persons likely to be affected thereby and, as required by sub-section (3) of the said section 237, notice is hereby given that objections or suggestions thereon, if any, may for consideration of the Federal Board of Revenue be sent within seven days of publication of the draft in the official gazette. Objections or suggestions which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be considered by the Federal Board of Revenue, namely:-

DRAFT AMENDMENT

In the aforesaid rules, after Chapter XVIA, the following new chapter shall be inserted, namely,-

"CHAPTER XVIB

REFUND

210IA. Application.- This Chapter shall apply to all refund orders issued under sub-section (4) of section 170 of the Ordinance.

210IB. Establishment of Centralized Income Tax Refund Office (CITRO) and posting of officers.- There shall be established a Centralized Income Tax Refund Office (CITRO) under the Federal Board of Revenue for centralized payment of refund amount to such claimants and from such date as the Board may specify.

210IC. Sanction and payment of refund.- (1) From such date to be notified by the Board, the Commissioner shall transmit an order under sub-section (4) of section 170 of the

Ordinance through Iris to the treasury officer in CITRO under his digital signature, and retain a copy thereof for record.

(2) The treasury officer in CITRO and the co-signatory designated by the Board in this regard shall issue the cheque or a promissory note to the FBR Refund Settlement Company Limited, as the case may be, for the sanctioned amount as mentioned in the refund order or online transfer.

(3) The CITRO shall also prepare a statement of payment advice for the concerned bank on a daily basis, for direct transfer to the taxpayer under intimation to the CITRO, the concerned Commissioner as well as the taxpayer.

(4) The in-charge of CITRO shall reconcile the refund cheques and payment advices issued during the month with the Bank scrolls received from the State Bank of Pakistan and record the outcome of such reconciliation in the system.

(5) Where any cheque is returned back by the State Bank of Pakistan due to any reason, the treasury officer shall cancel such cheque, if required, and attach such cancelled cheque with the respective counterfoil of the cheque-book.".

[F.No. 1(76)R&S/2020]

(Tariq Iqbal)
Secretary (Rules & SROs)